Adidas ends deal with Chelsea early, ups 2016 outlook

Wed May 11, 2016 12:08pm EDT
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FRANKFURT May 11 (Reuters) - German sportswear firm Adidas AG announced on Wednesday it is prematurely ending its partnership deal with English soccer side Chelsea, opening the door to an unnamed rival, prompting it to raise full-year profit forecast.

Adidas said the group's net income from continuing operations is now forecast to increase by around 25 percent in 2016 to a level of around 900 million euros ($1.03 billion), while its operating margin is now projected to increase to a level of around 7.0 percent.

As compensation for early termination of contract, Adidas will receive a payment in 2017 that will already positively impact group's profit in the second quarter, the company said.

In the second quarter Adidas expects a mid-double-digit million euros net income gain. ($1 = 0.8740 euros) (Reporting by Edward Taylor)